Question
Suppose Home Depot's beta is 1.11 and Lowes' beta is 1.44. Also, the expected return for the S&P 500 is 9%, and the current T-Bill
Suppose Home Depot's beta is 1.11 and Lowes' beta is 1.44. Also, the expected return for the S&P 500 is 9%, and the current T-Bill rate is 3%. According to the CAPM, what is the expected return of a portfolio consisting of $37,000 in Home Depot and $59,000 in Lowes? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 9.55%, enter .0955.
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Principles Of Finance With Excel
Authors: Simon Benninga, Tal Mofkadi
3rd Edition
0190296380, 9780190296384
